The holiday season is a time of gratitude, reflection, and generosity. Many families use this time of year to support the causes closest to their hearts—whether it’s a local nonprofit, a place of worship, a community foundation, or a national charity.

But what many people don’t realize is that charitable giving doesn’t have to be limited to year-end donations. With the right estate planning tools, you can support the organizations you care about for years to come—and create a lasting legacy that extends beyond the holiday season.

Here’s how to incorporate charitable giving into your estate plan, with a special focus on donor-advised funds and charitable trusts.

The Power of Holiday Giving—and Why It Belongs in Your Estate Plan

During the holidays, people often feel more connected to their communities and more mindful of the impact they want to leave behind. That makes this season the perfect time to think about:

• Which causes matter most to you
• How you want to be remembered
• How you can provide support in a meaningful and tax-efficient way

Including charitable giving in your estate plan allows you to make thoughtful, intentional decisions instead of reactive year-end donations. It also ensures your values continue forward for future generations.

1. Donor-Advised Funds: A Simple, Flexible Way to Give

A donor-advised fund (DAF) is one of the easiest ways to incorporate charitable giving into your long-term planning.

What is a Donor-Advised Fund?

A DAF is an account you create with a sponsoring organization—often a community foundation or financial institution—where you contribute assets now and recommend grants to charities over time.

Why They Work Well with Estate Planning

DAFs offer several benefits:

• Immediate tax deduction when you contribute to the fund
• Ability to grow the funds tax-free before distributing them
• Flexibility to support multiple charities over time
• Opportunity to involve your children or grandchildren in recommending future gifts
• Simplicity, since the fund handles administrative tasks

How to Use a DAF in Your Estate Plan

You can:

• Name your DAF as a beneficiary of a retirement account or life insurance policy
• Direct part of your estate to fund the DAF
• Create a succession plan that allows your children to continue charitable giving in your name

During the holidays, many donors gather with family to discuss which charities to support—turning the season of giving into a meaningful family tradition.

2. Charitable Trusts: Giving with Purpose and Precision

If you want to make a more substantial or structured charitable gift, a charitable trust can be an excellent planning tool. Two main types are used in estate planning:

Charitable Remainder Trust (CRT)

A CRT allows you to:

1. Receive income for life (or a set period), and
2. Leave the remaining assets to a charity when the trust ends.

Benefits of a CRT

• Provides lifetime income for you or loved ones
• Offers significant tax advantages, including potential capital gains tax savings
• Ensures a future gift to your chosen charity

When a CRT Makes Sense

A CRT is especially useful if you’re considering selling appreciated assets—like stock or real estate—and want to minimize capital gains taxes while still supporting a cause you love.

3. Naming a Charity Directly in Your Will or Trust

One of the simplest ways to give is by including a charity as a beneficiary in your:

• Will
• Revocable trust
• Life insurance policy
• Retirement account

This option requires no special structure and ensures your favorite causes receive the gift you intend.

4. Teaching the Next Generation the Importance of Giving

The holidays bring families together—making it the perfect time to talk about your charitable values. Whether through a donor-advised fund or a trust, you can involve your children and grandchildren in philanthropy by:

• Sharing why certain causes matter to you
• Allowing them to help recommend grants
• Creating a family mission statement for giving
• Including charitable planning goals in your estate documents

This not only strengthens your legacy but also helps younger family members understand the importance of generosity and community impact.

Final Thoughts

Charitable giving doesn’t have to be limited to a holiday donation or an annual write-off. With thoughtful estate planning, you can support the causes you love long after the holiday lights come down—creating a legacy of generosity for future generations.

Whether you’re considering a donor-advised fund, a charitable remainder trust, or a simple gift in your will, this season of gratitude is the perfect time to start planning.

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